To remain compliant with the Inflation Reduction Act (IRA), contractors must keep detailed records proving both prevailing wage and apprenticeship compliance. These records provide the evidence auditors need to confirm that your project qualifies for enhanced tax credits.
How Long to Keep Records
All IRA compliance records must be kept for at least 7 years.
This retention period ensures documents are available for both IRS and Department of Labor (DOL) audits.
Required Records for Apprenticeships
You must maintain documentation showing that apprentices were properly registered and supervised, including:
Signed Apprenticeship Agreements (Form 671)
Apprenticeship Standards and Appendix A wage schedules
Apprentice-to-journeyman ratio compliance (from certified payroll)
Apprentice labor-hour totals and allocations (from Apprentix)
Davis-Bacon certificates (renewed every 90 days for prevailing wage projects)
Required Records for Prevailing Wage
For prevailing wage compliance, auditors typically request:
Certified payroll records (WH-347)
Apprentice and Trainee Worksheet (WH-357)
Local wage determinations from SAM.gov
Proof of back wages or corrections if applicable
Best Practices for Audit Readiness
Use Apprentix to store all apprenticeship-related documents in one place.
Keep certified payroll and wage documentation with your payroll provider.
Ensure each apprentice’s hours in Apprentix match payroll totals.
Add notes in time entries like “Matches payroll MM/DD/YY – MM/DD/YY” for audit clarity.
Why Good Recordkeeping Matters
If records are incomplete, your project may lose eligibility for enhanced tax credits, even if apprentices were properly used. Auditors require clear evidence, and poor recordkeeping often leads to penalties.